PIPE Networks Limited (ASX: PWK) subsidiary, PIPE International (Australia) Pty Ltd today announces a major milestone in the development of its PPC-1 submarine cable linking Sydney with Guam.

At 13:45 Sunday, 23 August 2009, 'first light' was successfully transmitted and received across the fibre optic PPC-1 submarine cable system between Sydney and Guam.

Bevan Slattery, CEO of PIPE Networks said that this major PPC-1 milestone represented many positive things for the Company and the PIPE International team specifically.

"On its basic level, the passing of first light represents the physical completion of the PPC-1 system and the commencement of the testing phase in the development program. It also confirms that we have persevered through some of the most difficult of circumstances, including the global financial crisis, and achieved something that many said could never be done and will never be done," Mr Slattery said. This milestone has only been possible with the vision and support of our cornerstone customers including Telikom PNG, iiNet and Internode and the dedication and commitment of the PIPE International team and Tyco Telecommunications," he said.

In recognising this landmark achievement and the efforts of the PPC-1 team, the Board of PIPE Networks and PIPE International wish to thank the PIPE International team under the leadership of PIPE International Chief Operating Officer, Brett Worrall. The Board also extends its appreciation to PPC-1's customers and to Tyco Telecommunications for their outstanding commitment to the completion of this project.

"We now have staff in Sydney, Guam, Papua New Guinea, Tokyo and San Jose establishing PoPs and preparing for the testing of the greater network. It’s now a race to the finish these final works in the lead up to the official launch of PPC-1 on the 8th October, 2009," Mr Slattery said.

Mr Slattery said that the launch of PPC-1 will be the catalyst for a major positive change required in the competitive landscape in the Australian market for international transmission.